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182 Tenth LLC v. Manhattan Constr. Co.

The evidence did not support the jury's finding that the plaintiff was entitled to foreclose on a lien on the defendant's property for $1.75M because the verdict included items that were not lienable.

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182 Tenth, LLC appeals from the judgment entered on a jury verdict granting Manhattan Construction Company foreclosure on a special lien in the amount of $1,750,000.00 pursuant to OCGA § 44-14-360 et seq. on real property owned by 182 Tenth. For the following reasons, we reverse and remand the case for a new trial.

Manhattan filed a claim of lien pursuant to OCGA § 44-14-361.1 against 182 Tenth’s real property in the amount of $2,148,122.00 for furnishing labor, services, and materials on a construction project for the improvement of 182 Tenth’s real property. The lien claim arose pursuant to a construction contract between Manhattan, the general contractor, and Mid Atlanta Properties, Inc. in the original amount of $36,250,000.00 to build a condominium complex on 182 Tenth’s property. Manhattan stopped work on the project due to non-payment and subsequently filed suit asserting claims for breach of the construction contract against Mid Atlanta and foreclosure of the lien against 182 Tenth’s property. Prior to trial, Manhattan obtained an order granting partial summary judgment establishing that it was entitled at that time to recover $2,729,652.00 for amounts owed under the construction contract. After applying credits for payments received under the contract, Manhattan subsequently obtained a default judgment against Mid Atlanta for $4,886,606.00 which included the sum of $2,126,148.00 for unpaid amounts due under the contract.

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